Tata Group’s holding company Tata Sons is planning to buy an additional 12.65 percent stake in Tata Autocomp Systems (TACO) from Tata Capital for Rs 2,122 crore. Its total equity valuation is Rs 16,800 crore. Tata Capital has given this information in a notice sent to the stock market.
Currently, Tata Sons holds a 40 percent stake in auto component company Taco, while Tata Motors holds 26 percent stake. The remaining stake in Tata Autocomp is held by other Tata Group companies. Till the time of writing the news, no response was received to the email sent to Tata Group. The deal is expected to be completed before the end of the current financial year.
In its notice, Tata Capital said that it has entered into this deal to help grow its business with a strong ratio of sufficient capital and to ensure smooth business operations and may enter into various deals with Tata Sons. These include sale of investments, brand equity and business promotion contribution, availing/implementation of services and other deals to grow the business including lending and raising funds.
Tata Capital said in the information, ‘The company has equity investment in Tata Autocomp Systems and has sold a part of that investment to Tata Sons from time to time in various installments. The company had 12.65 percent equity shareholding of TACO as of April 1, 2024. In June this year, the company sold 5.08 percent of this equity investment to Tata Sons for Rs 850 crore and now it is proposed to sell the remaining equity investment in TACO i.e. 7.57 percent stake to TSPL for Rs 1,272 crore.’
Tata Capital said that an independent valuation of Taco was carried out for this transaction and the transaction was referred to the audit committee of the board of directors. Tata Sons currently holds a 93 percent stake in Tata Capital.
As the total value of investment deal sale and other deals with TSPL is estimated to be up to Rs 2,500 crore during FY 2024-25.
